Not quite sure where to start. My daughter is in college. Has scholarship for full tuition, plus an extra $1000 to spend as she likes. Other income is a W2 from the college for grading papers, a W2 from a company for tutoring, a 1099-NEC for other tutoring, and a 1099-NEC for DoorDash. So the only unearned income is $1000, right? TurboTax asks me for parents information, and when I enter it jumps her tax owed from $1300 to $2900. I assume that's kiddie tax, but why?
Also don't see place to enter 1098-T. Do I just enter it under the general scholarship question and then list the $1000 less amount when it says how much for qualified expenses? Does it matter if she spent the other $1000 on books etc.? It was not designated as such, free to spend as she likes.
Thanks.
